Retail investors hungry for Hurstville despite office market unrest

A Hurstville Hungry Jacks premises sold for $6.65 million at auction last week.

It reflected a yield of around 2% for the Forest Road premises.

The vendor’s reserve was $3.15 million according to William Gunning from Gunning Commercial.

Strong buyer interest from local buyers and mainland Chinese investors meant the Hurstville retail market was strong with yields sometimes under 5%.

Late last year the Huaxing Supermarket premises at 198 Forest Road fetched $2.23 million when sold to L & J Zhang Pty Ltd. The premises are 209 square metres.

The last big sale was $11.65 million last June when 124 Forest Road was sold to Shanghai Lihua Hurstville Pty Ltd by Smart Giant (Aust) Pty Ltd.

In 2012 the refurbished two-storey retail strip property leased to NAB sold for $9.013 million equating to a yield of 5.85%.

The bank branch sits on a 418-square-metre site at 252 Forest Road.

On the office front, earlier this year Centuria sold a 4,800 square metre commercial office building at 8 Woodville Street, Hurstville for $17.35 million ($3,615/m²), reflecting a yield of 8.3%.

It last sold for $13.38 million in 2008 when bought from Immer (169) Pty Ltd. 

The office market is being watched closely as the NSW Office of State Revenue is moving from Hurstville to Parramatta premises.

The decision was part of the push which will see more than 3,000 public servants head west under the proposal of then Premier and Minister for Western Sydney Barry O’Farrell “decade of decentralisation” policy.

The Office of Environment and Heritage is also moving Hurstville to Parramatta.

The Australian Taxation Office’s announced last year that it would close its Hurstville office in early 2015, with the relocation or loss of about 500 jobs.

Gunning have listed an investment opportunity in a central location in the shopping strip and commercial precinct .

The 227-229 Forest Road building comprises four levels – with the upper three commercial space.